Gold Revisits Rs 29K On MCX

MUMBAI-INDIA (Aug 13)  Gold futures revisited the Rs 29000 per 10 grams mark on the Multi Commodity Exchange today supported by the weak Indian Rupee and the festive season in India.

The physical demand ahead of the Rakshabandhan also boosted the yellow metal in Indian markets as Rakhi’s made of gold and silver are also used to tie.

The Indian rupee slumped to near a record low on Tuesday on doubts about the government's latest plan to narrow the current account deficit, deepening concerns about the economy and fears of more foreign capital outflows. The rupee fell to as low as 61.66 per dollar, nearing the record low of 61.80 hit on Aug. 6. It has lost about 11% so far this year.

India's finance minister P. Chidambaram announced a slew of measures on Monday in a bid to relieve some of the grinding pressure on the currency, focusing on curbing imports and raising money abroad. The aim is to narrow the current account deficit to 3.7 percent of gross domestic product in the fiscal year ending in March 2014, down from a record 4.8 percent in the previous fiscal year.

The rally in the international gold futures also supported the domestic bullion. The COMEX gold futures for December delivery are trading up $ 1.1 at $ 1335.3 an ounce.

In the domestic Multi Commodity Exchange gold for October delivery are trading up Rs 10 at Rs 28933 per 10 grams. The metal hit the high of Rs 29175 earlier today.